“Won’t it be good it would be if we step into our home and move out of this rented one? The rent we are paying here will become the EMI for the new house”. “Don’t you think that EMI’s would be a burden on us”, he said.
It is a normal thought that the EMI would become a burden on the breadwinner if they get their house financed. It is actually not that difficult to pay the EMI’s. It’s good to shift in your own house and pay a limited number of EMI’s than to stay in a rented house and pay the annually increased for a longer duration.
There will be monthly budget fluctuations but this will not crash your dreams for a better and own home. It is advisable to make your loan tenure short as you end up paying more interest in a longer tenure. If you think that you are alone working a 9-5 shift just to fulfill the monthly installments, then you are not alone. But making EMI’s a burden on your shoulders and changing your lifestyle according to that is not what you should do.
TIPS YOU SHOULD FOLLOW TO REDUCE THE HOME LOAN BURDEN
- First and foremost, shorten your loan tenure. Shorter the loan tenure, the early you get free from the loan. There is no need to stretch the loan unnecessary because the longer the loan, more interest you end up paying.
- If it is possible for you then pay more than the EMI, this will reduce the principle that is remaining this will directly reflect the interest. You can also increase the numbers of EMI’s per year. This will, in turn, reflect the interest.
- It is preferable to go through various home loans schemes before finalizing on one. Find out the one which has the lowest interest rates. If you have already sanctioned the loan from one bank in a jiffy and you want to lower the interest rates then you can leave the current deal and find a new bank which is offering the desired interest rate. Never take the home loan decisions in haste, going through research always helps.
- Repay the principal amount first as lesser the principal amount, lesser the interest would be. If you get a raise in your salary then do not limit the original amount but instead increase the EMI amount. Use that bonus amount to pay your debts rather than indulging in a shopping spree.
Keep one thing in mind; do not overdo with the home loan approvals. Get an approval for a loan only if your pocket allows you to pay back the EMI’s. An affordable home loan is not a myth but if you do not follow the tips then you can land yourself in soup with no home in your hands.
Not only just home loans but you can use these tips for other loans which are much expensive than the home loan. Get a loan approved keeping the interest in mind.